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Suppose your expectations regarding the stock price are as follows: State of the Market Boom Probability 0.23 Ending Price $ 140 HPR (including dividends)

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Suppose your expectations regarding the stock price are as follows: State of the Market Boom Probability 0.23 Ending Price $ 140 HPR (including dividends) 44.5% Normal growth 0.29 110 11.5 Recession 0.48 80 -21.5 Use the equations E(r) = p (s) r(s) and o = p (s) [r(s) E(r)] to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mean % Standard deviation %

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